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First Advantage (FA)
NASDAQ:FA
Earnings Data
Report Date
May 07, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.14Last Year’s EPS
0.17Same Quarter Last Year
Strong Buy
Based on 8 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 27, 2025
|% Change Since: -26.70%
|Next Earnings Date:May 07, 2025
Earnings Call Sentiment|Neutral
The earnings call highlighted the successful strategic acquisition of Sterling, improved synergy targets, and a strong pipeline with significant new wins. However, it also pointed out challenges with revenue declines in the Americas, lower margins in the Sterling segment, and ongoing base revenue headwinds.Company Guidance
During the First Advantage Fourth Quarter and Full Year 2024 Earnings Call, several key metrics and strategic initiatives were highlighted. The company reported pro forma full-year revenues of approximately $1.5 billion with $397 million in pro forma adjusted EBITDA, or $458 million on a synergized basis. They completed nearly 190 million screens for 80,000 active customers, achieving a gross retention rate of approximately 96%. The strategic acquisition of Sterling for $2.2 billion was a focal point, with updated cost synergy targets increased to a range of $60 million to $70 million. The company introduced full-year 2025 guidance with expected revenues of $1.5 billion to $1.6 billion, adjusted EBITDA of $410 million to $450 million, and adjusted diluted EPS of $0.86 to $1.03. Despite a challenging macro environment, First Advantage showed resilience, maintaining strong cash flow and productivity in upsell, cross-sell, and new logo growth, with 25 enterprise bookings in Q4. The integration of Sterling has been progressing well, with over 50% of target synergies expected to be actioned within six months of closing. The company's strategic focus includes leveraging the combined capabilities of First Advantage and Sterling to enhance customer value proposition, expand technology platforms, and drive innovation, positioning them for future growth in 2025 and beyond.Strategic Acquisition of Sterling
First Advantage successfully closed on a $2.2 billion strategic acquisition of Sterling, enhancing their capabilities and positioning them as a leader in the market.
Increased Synergy Targets
The company raised its net cost synergy target range from $50 million to $70 million, now targeting $60 million to $70 million, with 50% of synergies expected to be actioned within the first six months post-closing.
Strong Pipeline and New Wins
The company saw momentum in their pipeline with 25 enterprise bookings in Q4 and notable large U.S. deals, including a major healthcare win and a significant retail customer in the gig economy.
Improved International Performance
The Legacy First Advantage International segment showed growth with revenues increasing 8.9% in Q4 and 7.0% on a constant currency basis.
Stable Customer Retention
Gross retention remains at approximately 96%, with strong customer satisfaction and NPS scores across both First Advantage and Sterling segments.
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FA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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FA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 27, 2025 | $18.58 | $16.26 | -12.49% |
| Nov 12, 2024 | $18.57 | $18.58 | +0.05% |
| Aug 08, 2024 | $16.45 | $17.17 | +4.38% |
| May 09, 2024 | $16.23 | $16.31 | +0.49% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does First Advantage (FA) report earnings?
First Advantage (FA) is schdueled to report earning on May 07, 2025, TBA Not Confirmed.
What is First Advantage (FA) earnings time?
First Advantage (FA) earnings time is at May 07, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FA EPS forecast?
FA EPS forecast for the fiscal quarter 2025 (Q1) is 0.14.
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